Package may help recoup losses: SRTEPC chairman

Shri Sanjeev Saran, Chairman of The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has welcomed the announcement of revised rates of Duty Drawback and DEPB and said that he was happy that the Government has made an attempt to address the problems faced by the MMF textiles exporters. He added that the new rates which have been enhanced by 2-3% is an improvement but are much below the 5% as the exporting community was expecting. However he thanked the authorities for making the rates applicable with retrospective effect from 1st April, 2007 which he said would be appreciated by all the exporters.

Dwelling on the revised DEPB rates, which are increased by 3%, the SRTEPC Chairman said that the Government has not factored in 4% SAD and duty on fuel in revised DEPB rates and appealed to the authorities to introduce a suitable refund mechanism to reimburse the exporters.

Another welcome step is the reduction in the interest rate by 2% but this should not be restricted to 31st Dec 2007 but should be continued. It appears the reduction of 10% in ECGC premium is yet to be notified.

The situation for the MMF textile exports had got worsened as it got a jolt as well due to the sudden and substantial increase in prices of Viscose fibre and polyester fibre. During the first two months of current year i.e. April and May the export of value added products i.e. Fabrics of Poly/Viscose declined by 23% in Rupee terms, and in Poly/Cotton by 46%. In made ups, main items also showed decline, ranging from 26% to 73%.

We now have the first priority as to how to arrest the decline in exports added Shri Saran. The situation of MMF textiles is still grim and needs support and help from the Government by way of increased drawback and DEPB rates, to the tune of 5% as the competitiveness has been eroded.

With this relief package at least some breather will come and losses will be reduced, however in current scenario it is insufficient to even near the targets set, he added.